As the world's oldest travel firm suddenly collapsed on Monday, hundreds of thousands of tourists and travelers using the company's services were left stranded throughout the world. Thomas Cook's collapse resulted in the largest peacetime repatriation effort in British history, with travelers desperately trying to return back home.
The British company, which was originally established in 1841, had pioneered the family package holiday. During its liquidation, Thomas Cook had over 600,000 people abroad who were using its services to book hotels, resorts, and airlines.
The mass repatriation of the company's customers, who were traveling to places as far as Cyprus and Cuba, had required the assistance of governments and insurance firms.
The hundreds of thousands of stranded passengers reported did not receive any kind of notification regarding the company's liquidation. According to Condor, Thomas Cook's German subsidiary, there are apparently around 240,000 people currently booked on its flights. Meanwhile, reports have revealed that over 50,000 people are now stranded in Greece and Nordic destinations.
UK Prime Minister Boris Johnson has pledged to get all of the stranded British travelers back home. The country's Civil Aviation Authority (CAA) has mentioned that it has prepared a fleet of planes to bring home around 150,000 travelers over the next two weeks.
The company's liquidation was announced early on Monday, following the company's failed attempt at securing a deal with its creditors. The firm also failed to secure a government bailout. The liquidation essentially cut off all of its services worldwide, resulting in some customers being asked to pay for their bills even though they had already booked a package with Thomas Cook.
Apart from affecting the employment of more than 21,000 people, the sudden collapse also negatively affected the operations of thousands of booking websites, travel agencies, airlines, and credit card companies.
The shut down also affected hoteliers and tour operators, who are already struggling due to the rise of budget airlines and online competitors such as Airbnb.
Due to the rise of online competitors and specialized packages, Thomas Cook has been having a difficult time adjusting to the changing customer demand. The company, which operates two separate businesses - a tour operation and an airline, also incurred massive debt due to a series of ill-fated deals. Thomas Cook reportedly had to sell three million holiday packages per year to cover the interest of its standing $2.1 billion debt.
The company had received a $1.1 billion rescue package from different banks and shareholders, but it wasn't nearly enough to keep its operations afloat. Executives reportedly met over the weekend in a last-ditch effort to secure more funds. Unfortunately, the British government refused a bailout, stating that it wouldn't be a good long-term investment.
